What John Deere’s Right to Repair Settlement Means

John Deere agreed to pay out $99 million to settle a class-action lawsuit for a practice about which farmers have complained for years: right to repair. In the terms of the settlement, Deere did not acknowledge that it did anything wrong but would pay out the money to farmers following the longstanding allegations that it restricted access to tools and repairs.

Those restrictions, farmers complained, essentially limited repairs to certain dealers, raised costs, and established a monopolistic system.

Car and Driver reported about the settlement: “The battle between farmers and John Deere over the right to repair has been roiling the agricultural sector for years, but the effects of this landmark case have a strong chance of spilling out into the automotive and technology markets.”

But specifically for agriculture, Car and Driver said, “That means a small farm that wouldn't get the white-glove treatment from John Deere that a bigger account might be able to can now either handle things on its own or rely on a local multi-brand equipment specialist.”

John Deere response to proposed settlement

“As we continue to innovate industry leading equipment and technology solutions supported by our world-class dealer network, we are equally committed to providing customers and other service providers with access to repair resources,” said Denver Caldwell, Vice President, Aftermarket & Customer Support in a statement. 

The statement also said, “We’re pleased that this resolution allows us to move forward and remain focused on what matters most – serving our customers.”   

The settlement would not necessarily help farmers recover all the additional costs they faced over the past decade for the repair restrictions and delayed harvests. Farmers could apply for some repayment through the $99 million fund. The settlement would also reportedly provide customers with greater access to tools and services for at least the next decade.

States propose right to repair legislation

Heavy agricultural states like Iowa have proposed legislation to give farmers increased ability to fix their own tractors and other equipment, a reflection of the independent spirit of farmers that has been tested by equipment manufacturers’ forced limitations.

Farmers and independent repair shops could get easier access to software, parts, and tools under the Iowa proposal. State Representative Derek Wulf, R-Hudson, wants the legislation to restore farmers’ ability to repair their equipment as quickly as possible.

“Farmers are our best problem solvers. They’re known for self-reliance,” Wulf said in this Iowa Capital Dispatch story. “If something breaks, farmers want to be able to fix it themselves whenever possible. This bill certainly gives them that ability.” 

Although, Clayton Haley, an independent farm equipment dealer in Carroll, Iowa, expressed doubts to Iowa Public Radio about the proposal.

Haley thinks the proposal could end up raising costs for farmers.

“Pretty please get out of my balance sheet and stop trying to affect my profit and loss,” Haley said. “I promise I can run it, and I don’t make as much as you probably think I do.”

RELATED: Last summer, John Deere said that President Donald Trump’s higher tariffs cost the company millions of dollars.